What is the outlook for healthcare in 2023?

Asked by: Florian Steuber III  |  Last update: December 18, 2025
Score: 4.8/5 (51 votes)

National health care spending reached $4.9 trillion in 2023 (or $14,570 per person), increasing 7.5 percent from 2022 (exhibit 1). This rate of growth was faster than in 2021 and 2022, when health care spending increased 4.2 percent and 4.6 percent, respectively.

What is the outlook for the healthcare sector in 2023?

Provider profit pools faced substantial pressure in 2022 and are likely to continue to do so in 2023 as a result of inflation and increased labor costs. We now estimate that total EBITDA will fall by 25 percent from 2021 to 2023, declining to $235 billion.

What are the changes in healthcare for 2023?

Under the new law, Congress permits states to begin Medicaid eligibility redeterminations and renewals as of April 1, 2023, regardless of COVID-19 PHE end date, and also phases down the increased federal medical assistance percentage (FMAP) to states starting in April 2023 and concluding December 31, 2023.

Will there be healthcare layoffs in 2023?

Total U.S. healthcare layoffs in 2023 went up by an over 90 percent increase from the total number of healthcare layoffs in the U.S. in 2022.

Is there a shortage of healthcare providers in 2023?

Ethan Popowitz, Addressing the healthcare staffing shortage, Definitive Healthcare, September 2023. Looking ahead, physicians' desires to step back from clinical care show no signs of abating, with current projections indicating the physician deficit could grow to up to 86,000 by 2036.

2023 Healthcare Outlook

43 related questions found

Which health profession has the most shortages?

Primary care: This field, which includes general practitioners, family medicine doctors and internists, faces the highest demand. The shortage of primary care physicians is driven by an aging population, an increase in chronic diseases and a growing need for preventative care.

Is health care declining?

The quality of healthcare starts at 53% in 2001, peaks at 62% in 2010 and 2012, and then declines to a low of 44% in 2024. Healthcare coverage starts at 30% in 2001, fluctuates over the years, falling to 21% in 2005, peaks at 41% in 2012, and is 28% in 2024.

What major company is laying off in 2023?

In 2023, Amazon layoffs led the numbers with 16,000 roles cut. Layoffs at Alphabet, the parent company of Google, totaled about 12,000, and Microsoft's layoffs totaled about 10,000 workers in 2023, as did Facebook parent Meta's layoffs.

Why are nurses getting laid off?

One of the primary reasons behind these layoffs lies in the financial pressures hospital systems are under. Rising costs, changes in reimbursement structures, and the increasing expense of providing care have led many institutions to make budget cuts to balance their finances.

Why are there so many layoffs in healthcare?

Hospital layoffs have escalated in the fourth quarter as health systems address balance sheets that have been eroded by recent operating losses and react to ongoing financial and workforce pressures.

How will the healthcare system change in the next 10 years?

In the next 10 years, process and outcomes will be optimized for a significant proportion of patients with relatively common diseases. With these patients, care will become more regularized, making it possible to develop a better understanding of the best care delivery model.

What is the physician outlook for 2023?

Overall employment of physicians and surgeons is projected to grow 4 percent from 2023 to 2033, about as fast as the average for all occupations.

How many americans are without health insurance in 2023?

In 2023, 25.3 million people ages 0 to 64 were uninsured, and the uninsured rate for this population was 9.5%, both statistically unchanged from 2022. While the uninsured rate held steady from 2022, it was lower than in 2019 (10.9%) prior to the start of the coronavirus pandemic (Figure 1).

What's the future of healthcare?

Healthcare providers will become more consumer oriented in response to large non-legacy corporate entities playing a greater role in delivering care. Advanced practice clinicians (APCs) will become the primary care providers for many Americans, reserving MDs and DOs for complex cases.

What is the staffing industry outlook for 2023?

The last few years have been tough for staffing. Industry revenue fell by 14% in 2023 and will likely drop another 10% in 2024, according to SIA forecasts. The decline has been so widespread that we are now back at 2014 levels of around 2.7 million workers.

Is the healthcare industry growing or shrinking?

The nursing and residential care facilities industry is projected to add 146,300 new jobs from 2023 to 2033, representing a growth rate of 4.6%. This would be a turnaround from the 75,300 jobs lost, equivalent to a 2.3% decrease, observed between 2013 and 2023.

Why do people not want to be nurses anymore?

Due to increasingly unsustainable working conditions, nurses are quitting in droves. Although these resignation rates aren't new, they've been exacerbated by the pressure and moral distress brought on by the Covid-19 pandemic. A nurse's decision to leave the profession isn't something they take lightly.

What is the #1 reason that employees get fired?

2. Failing to perform the job for which one was hired. Unsatisfactory performance is the primary reason why most employees get fired.

Why are hospitals downsizing?

A number of hospitals and health systems are reducing their workforces or jobs due to financial and operational challenges. Below are workforce reduction efforts or job eliminations announced this year.

Who gets laid off first?

The last employees to be hired become the first people to be let go. This makes sense logically. If they were recently hired, they probably haven't become as strong of organizational assets yet.

What industries will suffer in 2023?

5 Industries Most Affected by Recession and How They Can Thrive During an Economic Downturn
  • Retail. According to economists, the retail industry is among the industries most affected by recession in 2023. ...
  • Restaurant. ...
  • Travel & Tourism. ...
  • Real Estate. ...
  • Manufacturing.

What industry has the most layoffs?

Professional and business services has the highest average layoffs per year, and mining and logging has the lowest.

What state is #1 in healthcare?

Hawaii, Massachusetts, Minnesota, Iowa, and Connecticut are the top-ranked states according to the 2020 Scorecard, which assesses all 50 states and the District of Columbia on more than 45 measures of access to health care, quality of care, service use and costs of care, health outcomes, and income-based health care ...

What happens in America if you can't afford healthcare?

Americans are no longer taxed for not carrying health insurance. Medical debt contributes to a large number of bankruptcies in America. Access to quality primary care is critical, but doctors have the right to refuse patients without insurance or who are able to pay out-of-pocket expenses.

What is the biggest problem with US healthcare?

(2024) Here Are 7 Big Issues Facing Healthcare Right Now
  • Rising Costs of Healthcare Services. ...
  • Financial Challenges for Providers. ...
  • Shortage of Healthcare Professionals. ...
  • The Need for Improved Mental Health Systems. ...
  • Increased Demand for Personalized Care. ...
  • Big Data and Cybersecurity Issues.